Peso closes at 49.05 to $1

MANILA, Philippines - The peso retreated back to the 49 to a dollar level yesterday, dragged down by worsening anxiety in the region over the depth and extent of the global economic recession that would ultimately hurt emerging economies.

The peso opened weak at 48.90 to the dollar, against its previous close of 48.80 to the dollar on Friday. The currency continued to lose ground during the day and hit a low of 49.145 to the dollar.

Traders said the Bangko Sentral ng Pilipinas (BSP) was seen in the market attempting to support the peso until the market closed with the currency still losing at 49.050 to the dollar.

Trading was thick and brisk with total volume reaching $740.50 million.

The peso had been holding steady early in the year  but it had continued to depreciate last month, a trend that appeared to be persisting this month with foreign exchange still flowing out of the country.

“The peso is likely to stay under pressure as most developed economies slowed down dramatically,” said Marcelo Ayes, senior vice president for financial markets at the Rizal Commercial Banking Corp (RCBC). “Risk-aversion elevates and economies like ours experience more outflows,” Ayes said.